Tax Deductions: Can I get a Break?

Tax season is upon us once again.  Why do I bring this up here? Many are experiencing how the costs for senior living continue to rise each and every year. Most are wondering, "Can I get a break?" 

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​Did you know that under the federal Health Insurance Portability and Accountability Act (HIPAA), seniors may be eligible to deduct portions or all of assisted living costs as a medical expense, for Federal income tax purposes. All costs related to senior care may be deductible if the resident is unable to perform (without substantial assistance) at least two activities of daily living (such as eating, bathing, dressing, etc.) or who require substantial supervision to protect the individual from himself or herself because of severe cognitive impairment. Wondering what qualifies as a medical expense? For the most part, any item or service that is directly related to the individual’s medical care. This includes insurance premiums (health, Medi-care, long-term care insurance), glasses, hearing aids, oxygen, hospital services and many others that you may have not considered.

You can find a complete list of what you can and cannot deduct in IRS Publication 502.

We encourage you to fully explore this opportunity and seek the advise of your tax advisor.

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